There are changes under way in Detroit which in their own way could be as revolutionary as the assembly line that Henry Ford used to build his fortune and his classic cars.

Automakers looking at long term

American industry was the unchallenged global leader in almost every sector during most of the 20th century, but thanks to increasing education, telecommunications, technology and competition, a number of great American industries have largely been exported in the past quarter century to foreign shores.

Textile, steel, weaponry, electronics and yes, automobile manufacturers all started to see increased profitability by moving abroad - or in some cases simply surrendered to more efficient international competitors. It's not hard to see why. Just think of the difference between the payroll for a company whose employees get $2 an hour versus one whose employees get $20 an hour.

We don't have to point out that the $20 rate, and much higher, is what companies pay in the United States. The $2 rate is equivalent to an hourly wage in Mexico and other Third World countries.

It's thus easy to understand the lure of foreign production for American companies, and the success of foreign competitors against companies that remain loyal to the American work force with its ingrained expectation of health care, retirement and other benefits as well as generous hourly compensation. Those were all the gift of the organized labor movement to the American worker, and when unions first became a force in the early to mid 20th century, there is no doubt that workers needed them, or that they had a formula for success.

But that success counted on employers being dependent on a particular work force. If an employer was situated in Detroit, it relied absolutely on having a well-trained work force in Detroit, and could therefore be persuaded to pay the highest possible rate in order to keep that work force happy. But then came the increasing mobilization of the work force, which meant decreasing loyalty by both employees and employers, and the increasing ability to pick up and move even the most complicated operations to a new location because of the miracles of the Internet, high speed travel and improved technical efficiency.

All of which has left the American worker, American manufacturing and the American economy in a pickle.

Companies that remain in the United States help to support the work force and to create a sizable payroll, but also in many cases face declining profitability and potential bankruptcy. Companies that leave the country in full or in part are labeled traitors, ruthless or worse.

Sooner or later something had to give.

And it may finally be happening in Detroit, where one of America's most important, and indeed most essential, industries is based. DaimlerChrysler announced recently that it is eliminating 6,000 white collar jobs. Ford said it will eliminate 30,000 jobs over the course of the next six years, and close 14 plants in North America. Earlier, General Motors announced a similar cut of 30,000 jobs and the closure of 12 plants by 2008.

It sounds bad at first, but despite the human toll, these are changes that had to take place if the automobile industry was going to survive in America - and it is absolutely vital that they do survive. This country needs big-paying manufacturing jobs. We need companies that sell big-ticket items made in America instead of abroad. And we need companies that are capable of converting quickly to the manufacture of munitions as Detroit's automakers had to do during World War II. In many ways, these companies are essential to our national security.

We know that the U.S. auto industry is responsible for some of its own problems, but don't try to blame Detroit's problems on lower-quality cars. It just isn't so. Very few of us would turn down a new Ford, Chevy or Chrysler. We know these cars are attractive, efficient and well-built. Many of them are fuel-efficient as well, matching the demands of the market. But they are expensive, and most consumers won't pay more money for equivalent products just to help protect American jobs.

That's why carmakers are now taking the important steps of restructuring to remain competitive in the 21st century. And if you don't think that this restructuring is necessary, consider this: Many of the workers who lose their jobs won't lose their salary, too. Instead, they will be added to the "JOBS Bank" - a program negotiated by the United Auto Workers union so that workers receive full pay and benefits if their job is eliminated. Each worker in the program costs Ford about $130,000 per year even though they do no work.

That's the kind of "Alice in Wonderland" absurdity that makes it hard to stay competitive against manufacturers in countries such as Korea and China, where such luxury contracts are unimaginable.

The automakers have let it be known that they will have demands of their own in future contract negotiations with employees. From now on, both sides have to realize they need each other to succeed. That is the first step. Once that is accomplished, the companies can continue to do what they do best - work to improve design, assembly and efficiency of automobiles. If they don't have to worry about bankruptcy, they will be in a much better position to do so.